What is the primary difference between a stock ledger and an inventory register in inventory management?

• A. Stock ledger records financial/valuation changes, while inventory register tracks quantities, batch, and location.
• B. Stock ledger tracks quantities, batch, and location; inventory register records financial values.
• C. Both track the same types of information.
• D. The stock ledger is used only for external reporting.

Answer: (A)

The main idea behind this difference is separating financial valuation from physical stock details. The stock ledger is an accounting record that captures how the monetary value of stock changes over time—opening value, purchases, usage, adjustments, and write-offs—so it supports financial reporting and the balance sheet. The inventory register, by contrast, is an operational record of the physical stock: how many units are on hand, their batch or lot numbers, and where they are located in the warehouse to aid picking, replenishment, traceability, and expiry management. Because they track different aspects, they serve distinct purposes. That’s why the statement describing the stock ledger as recording financial/valuation changes while the inventory register tracks quantities, batch, and location is the best fit. The other options mix up data types or roles, and stock ledgers aren’t limited to external reporting.